Drilling services provider Mitchell Services
(ASX:MSV) has announced a five-year contract with Kalgoorlie Consolidated Gold Mines.
Under the contract Mitchell will provide underground diamond drilling services at the company's Mt Charlotte Underground Mine, which is adjacent to Kalgoorlie-Boulder in Western Australia.
While the Company expects a material long term revenue and earnings benefit as a result of the contract it's not likely to have a material impact on FY19 revenue and earning EBITDA guidance numbers of $110m-$120m and $21m-$23m respectively.
Mitchell Services says the deal strategically provides it with a multi-rig multi-year contract in Western Australia which will aid further growth over time.
Shares in Mitchell Services
(ASX:MSV) last traded at 6 cents.
